FPM SA receives license from Central Bank of Congo

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• 25 Mio. USD to support the development of the financial and microfinance sector in the Democratic Republic of the Congo (“DRC”)

• Better access to financing for thousands of micro, small and medium sized enterprises

Kinshasa, 23 February 2015 – On February 3rd, FPM SA (Fonds pour l’inclusion financière en République Démocratique du Congo) obtained the authorization by the Central Bank of Congo to operate as a Financial Company. FPM SA will be able to start financing the financial institutions that target micro, small and medium-sized enterprises (“MSME”) in the DRC. This new financial instrument will complement “FPM ASBL” which has been operating in the DRC since 2007 and focuses on providing Technical Assistance (TA) to the Congolese financial institutions that FPM SA is targeting as well. More than 50 TA-projects have been carried out so far.

FPM SA benefits from capital contribution of KfW, the German Development Bank on behalf of the Federal Government, for about USD 13 Mio., the Belgian Investment Company for Developing Countries (BIO) for USD 8 Mio., the Dutch Catholic Organization for Relief and Development Aid (Cordaid) for 4 Mio. USD and the Belgian microfinance fund Incofin CVSO for USD 100k.The objective of the fund is to provide up to USD 60 million medium-term credit lines to Congolese financial institutions in the coming 5 years. These credit lines will be used by the financial institutions to finance MSMEs in the DRC. Incofin Investment Management, a Belgian investor focusing on rural microfinance acts as the fund advisor for FPM SA, bringing on board its specific experience and knowledge of the financial services market for micro, small and medium enterprises.

Improving access to finance for micro, small and medium enterprises

Most Congolese MSMEs do not have access to financial services in general and financing in particular: local banks are still giving priority to larger corporate clients. As a result, most MSMEs develop slowly and stay in the informal sector. FPM SA aims at supporting the development of financial institutions active in microfinance (from microfinance banks to savings cooperatives), as well as local commercial banks who are downscaling and have initiated specific financing programs targeting the smallest SMEs.

“ Aiming at the sustainable development of the Congolese economy, FPM SA will target viable financial institutions that have a good level of governance or are working towards attaining that level, not least by the capacity building provided by FPM ASBL. By supporting the development of an inclusive financial system in the DRC, FPM SA will play a leading role in financing entrepreneurship and the local private sector, which will also result in job creation, poverty reduction and sustainable positive effects on the local economy.” Said the Belgian Minister for Development Cooperation, Alexander De Croo.